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Daito Gyorui Posts Extraordinary Loss Due to Doubtful Debt Collection

April 23, 2013

Tsukiji-based company Daito Gyorui (President Nobuyuki Aoki) received common shares of US company Umami as a pledge of collateral for long-term loans (2.33 billion yen) of seafood trader Atlantis (Tokyo; President Yuji Wakasa). However, it became known in the second quarter report presented to the U.S. Securities and Exchange Commission (SEC) by Umami that there was a going concern assumption. Facing a probability of not being able to collect the debts by selling the stocks of Umami, Daito Gyorui made an official announcement on April 22 that it might not be able to get repaid, at all.

Daito Gyorui posted provision of allowance for doubtful accounts totaling 1.24 billion yen, as an extraordinary loss in the third quarter for FY ending March. With the collateral from Umami now being worthless, an additional loss of 1.09 billion yen was registered for the full-year account settlement. In line with these changes, net loss was revised to 4.86 billion yen from 4.1 billion yen.

Furthermore, sales were changed from 127.5 billion yen to 125.7 billion yen; operating loss from 1.65 billion yen to 1.6 billion yen; ordinary loss from 1.66 billion yen to 1.54 billion yen.

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